Lenders pool loan data to detect fraud

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Lenders who originate 70 percent of U.S. mortgages are now participating in a loan monitoring program operated by data aggregator CoreLogic to help detect short-sale "property flops" and other mortgage fraud, the company says.Lenders participating in CoreLogic's Mortgage Fraud Consortium contribute their loan information to a database that currently houses more than 80 million loan applications and is growing by eight to 10 million applications per year, CoreLogic said.The database can be accessed by CoreLogic's fraud detection tools, which are designed to uncover patterns of unethical behavior by real estate agents and others involved in short sales.The detection tools look for rapid resales of properties or repeat transactions in which the resale amount is much higher than the ...